UK workers consider investment options to fund pensions

Almost three-quarters of UK workers are considering alternative pension investment options to fund their retirement, including celebrity memorabilia, art and antiques and wine or whisky, research reveals.

A survey of nearly 1,700 UK employees, by HR consultancy Aon Consulting, shows that with many UK employees no longer having faith that their pension will provide them with an adequate level of income in retirement, 70% of respondents are now prepared to consider alternatives.

The research shows that while investing in property (58%) and shares (50%) are two of the most popular supplementary investment options, many UK employees are considering investing in art and antiques (38%), an evergreen forest (34%), a classic car (34%), wine or whisky (31%) or celebrity memorabilia (29%).

Ian Dearnley, client relationship director of Aon Consulting, said: “It’s great that employees are thinking about alternative ways to fund their retirement as a diverse investment portfolio can help to minimise the risk of poor returns.

“However, the average UK investor should be wary of directing too many funds towards the latest investment craze of buying signed photos of today’s hottest celebrity, or relying on a dusty bottle of Bordeaux to appreciate in value, without initially seeking proper investment advice.”

It is important that investors also take the time to understand how their occupational pension scheme is invested, Dearnley said.

“This way they can avoid the risk of double exposure by choosing not to put money into the same investment vehicles that their pension fund is already investing in, such as the more traditional property or share options,” he said.